Reed's, Inc. to Begin Shipment of Its Natural Energy Drink

LOS ANGELES, CA–(Marketwire – April 23, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has released its all new Reed’s Natural Energy Elixir, a functional beverage containing Ginger, Camu Camu, Green Tea, Jiaogulin, Goji, Acai, Ginseng, L-Theanine and B Vitamins. The product is being sold in natural foods and mainstream markets nationwide in 10.5 oz single-use cans.

“Reed’s Natural Energy Elixir is a next generation energy drink that is fundamentally different from current energy drinks,” stated Christopher Reed, Founder and CEO of Reed’s, Inc. “Current energy drinks borrow from the health of an individual by providing an artificial boost from stimulants like caffeine. The long term effect of our beverage is to increase your basic health and energy levels and not to run you down.” Mr. Reed added, “We look at it as a product for consumers who were previously not interested in energy drinks because of the ‘spike and crash’ syndrome, and the inclusion of artificial ingredients so common to mainstream energy drink products. Reed’s Natural Energy Elixir is different, it’s ‘Real Energy, Naturally.'”

Mr. Reed continued, “Because of our diligence in crafting the Energy Elixir from only the finest ingredients, this is an energy drink that the natural food retailers will carry, unlike the mainstream energy drinks, which have ingredients that would never find their way onto natural foods retailer’s shelves. We therefore believe there is a very large, untapped market, the natural foods consumer, for our Reed’s Natural Energy Elixir.”

The Reed’s Natural Energy Elixir contains the following functional ingredients:

As part of its latest consumer survey into the market, market analyst firm Mintel International Group LTD reported that, “In the five years between 2008 and 2003, 24 million more Americans were drinking bottled water with 11 million additional consumers turned to sports drinks.” Younger consumers in particular were picked by the analyst as, “Playing a major role in shifting demand,” as energy drinks consumption was also found to have doubled by 2008 to 34.5 million consumers, from just about 17.4 million consumers in 2003.

According to just-drinks, a leading publisher of global drinks industry information, in their latest report titled, Global Market Review Of Functional Soft Drinks – Forecasts To 2014, they stated that, “With the health and wellness trend well set, the Functional Soft Drink (FSD) market is forecast to continue growing over the coming five years.”

Reed’s, Inc. makes the top selling sodas in natural food markets nationwide and is currently selling in 10,500 supermarkets in natural foods and mainstream. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. In addition, the Company owns the top selling root beer line in natural foods, the Virgil’s Root Beer product line, and the top selling cola line in natural foods, the China Cola product line. Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams.

Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada. For more information about Reed’s, please visit the company’s website at: http://www.reedsgingerbrew.com or call 800-99-REEDS.

Some portions of this press release, particularly those describing Reed’s goals and strategies, contain “forward-looking statements.” These forward-looking statements can generally be identified as such because the context of the statement will include words, such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. While Reed’s is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition and other factors, any of which could have an adverse effect on the business plans of Reed’s, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Reed’s that they will achieve such forward-looking statements. For further details and a discussion of these and other risks and uncertainties, please see our most recent reports on Form 10-KSB and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Reed’s undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.